Bears have piled up pressure on Gujarat Gas shares in recent few sessions. The open interest (OI) has zoomed for the counter even as prices have been in a downtrend, a sign of a bearish setup called the short buildup.
At noon on January 12, OI for Gujarat Gas contracts was up 27 percent over the average, next only to Navin Fluorine which was seening a bullish setup.
Bars reflect changes in OI during the day. Red bars show call option OI and green put option OI.
In the cash market, Gujarat Gas traded down about a percent at Rs 464. The stock has lost nearly 11 percent in the past month. In the past five sessions, it has closed in the red four times.
The slide comes at a time when fundamental analysts have been bullish on the stock in particular and the gas segment in general.
Data shows that in the last couple of days, the volume has come down but selling is still happening at close to 1-month average volume.
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On the options front, put writing was seen at 470 and 480 strikes. This signals the building up of resistance at these levels; 440 strike has seen heavy put unwinding as support at that level is crumbling. Some fresh puts were written at 430 and 420 strikes but volume was low as of now.
Overall, the open interest increased by 6 percent on January 12. Gujarat Gas futures contract prices slid by 0.7 percent.
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